Entrepreneurship in Action

by Coulter, Mary A.

• ISBN13: 9780131011014
• ISBN10: 0131011014
• Edition: 2nd
• Format: Paperback
• Copyright: 2002-11-19
• Publisher: Pearson

Summary

Fun, contemporary, and easy to read, this book conveys the excitement and reality of entrepreneurship. Coulter focuses on the actual tasks and activities of the entrepreneurfrom researching venture feasibility, to launching the venture, to managing growth.KEY TOPICSOther chapter topics include the context of entrepreneurship, the details of planning and organizing the venture, and managing processes and people.For up-and-coming entrepreneurs and owners of small businesses.

Table of Contents

Preface	xvii
Section 1 Introduction to Entrepreneurship	2	(82)
Entrepreneurs and Entrepreneurship	2	(38)
What is Entrepreneurship?	3	(13)
Definition of Entrepreneurship	3	(3)
Historical Perspectives on Entrepreneurship	6	(2)
Misconceptions About Entrepreneurship	8	(1)
Entrepreneurial Ventures and Small Businesses---The Differences	9	(2)
The Current Importance of Entrepreneurship	11	(2)
The Impact of Entrepreneurship Globally	13	(1)
The Entrepreneurial Process	14	(2)
Who are Entrepreneurs and What Do They Do?	16	(10)
Types of Entrepreneurs	17	(1)
Characteristics of Entrepreneurs	18	(5)
What Entrepreneurs Do	23	(2)
The Rewards and Challenges of Being an Entrepreneur	25	(1)
Chapter Summary	26	(1)
Key Terms	27	(1)
Sweat Equity	28	(2)
Entrepreneurship in Action Cases	30	(5)
Business Plan Pro Exercises	35	(1)
Business Now Video Case	36	(4)
The Context of Entrepreneurship	40	(44)
Issues Affecting Entrepreneurship in Action	41	(21)
Characteristics of Today's Economy	42	(12)
Legal Factors	54	(3)
Changing World of Work	57	(2)
Social Responsibility and Ethics	59	(3)
Identifying Environmental Opportunities	62	(4)
Understanding Competitive Advantage	66	(2)
Chapter Summary	68	(2)
Key Terms	70	(1)
Sweat Equity	71	(2)
Entrepreneurship in Action Cases	73	(6)
Business Plan Pro Exercises	79	(1)
Business Now Video Case	80	(4)
Section 2 Entrepreneurial Ventures---Start-Up Issues	84	(152)
Researching the Venture's Feasibility	84	(42)
Generating and Evaluating Business Ideas	85	(13)
Misconceptions About and Realities of Great Ideas	85	(2)
Generating Ideas	87	(6)
Evaluating Ideas	93	(5)
Researching Competitors	98	(4)
What is Competition?	98	(1)
Who Are the Competitors?	98	(2)
Getting Competitor Information	100	(2)
Researching Financing Options	102	(9)
Possible Financing Options	102	(7)
Evaluating Financing Options	109	(1)
Guidelines for Seeking Financing	110	(1)
Chapter Summary	111	(2)
Key Terms	113	(1)
Sweat Equity	114	(2)
Entrepreneurship in Action Cases	116	(5)
Business Plan Pro Exercises	121	(2)
Business Now Video Case	123	(3)
Planning the Venture	126	(34)
Developing Organizational Vision and Mission	127	(7)
What Are the Organizational Vision and Mission?	127	(1)
Why Are the Organizational Vision and Mission Important?	128	(1)
How Do You Develop Vision and Mission Statements?	129	(5)
Organizational Culture Issues	134	(7)
What is Organizational Culture?	135	(1)
Dimensions of Organizational Culture	135	(1)
The Source of Culture	136	(1)
How Organizational Culture is Learned	137	(2)
The Importance of Understanding Culture	139	(2)
Developing and Writing the Business Plan	141	(7)
Why is a Business Plan Important?	141	(3)
What Should the Business Plan Include?	144	(3)
Writing the Business Plan	147	(1)
Chapter Summary	148	(2)
Key Terms	150	(1)
Sweat Equity	150	(2)
Entrepreneurship in Action Cases	152	(4)
Business Plan Pro Exercises	156	(2)
Business Now Video Case	158	(2)
Organizing the Venture	160	(36)
Legal Forms of Business Organization	161	(9)
Sole Proprietorship	161	(3)
General Partnership	164	(2)
Limited Liability Partnership (LLP)	166	(1)
C Corporation	166	(3)
S Corporation	169	(1)
Limited Liability Company (LLC)	170	(1)
Summary of Legal Forms of Organization	170	(1)
Other Legal Issues	170	(6)
Choosing a Business Name, Slogan, or Design	171	(1)
Patents	172	(2)
Contracts	174	(1)
Employment Laws	174	(1)
Other Miscellaneous Legal Issues	175	(1)
Organizational Design Issues	176	(7)
What is Organizing?	176	(1)
Organizational Design Decisions	176	(4)
Types of Organizational Structures	180	(3)
Chapter Summary	183	(2)
Key Terms	185	(2)
Sweat Equity	187	(1)
Entrepreneurship in Action Cases	188	(5)
Business Plan Pro Exercises	193	(1)
Business Now Video Case	193	(3)
Launching the Venture	196	(40)
Establishing Organizational Goals and Strategies	197	(8)
Organizational Goals	197	(7)
Organizational Strategies	204	(1)
Designing the Venture's Production and Operations Management Function	205	(8)
Operations Management and Technology Strategies	205	(6)
The Important Role of Quality	211	(2)
Establishing the Venture's Marketing Function	213	(7)
Segmentation or Target Market Selection Strategies	214	(1)
Differentiation Strategies	215	(1)
Marketing Mix Strategies	216	(4)
Designing the Venture's Information Systems	220	(2)
System Technology	220	(1)
Types of Information Systems	221	(1)
Establishing the Venture's Financial and Accounting Systems	222	(3)
Evaluating Financial Performance	222	(1)
Financial Forecasting, Planning, and Budgeting	223	(1)
Financing Mix	223	(1)
Other Financial Management Decisions	224	(1)
Chapter Summary	225	(1)
Key Terms	226	(1)
Sweat Equity	227	(2)
Entrepreneurship in Action Cases	229	(4)
Business Plan Pro Exercises	233	(1)
Business Now Video Case	234	(2)
Section 3 Managing the Entrepreneurial Venture	236	(126)
Managing Processes	236	(48)
Making Decisions	237	(6)
The Decision-Making Process	237	(2)
Factors That Influence the Rationality of Decision Making	239	(4)
Measuring and Evaluating Organizational Performance	243	(12)
What Performance Results Are Important?	243	(1)
Tools and Techniques for Measuring and Evaluating Organizational Performance	244	(11)
Stimulating and Making Changes---Being a Change Agent	255	(2)
Contemporary Issues in Managing the Venture	257	(11)
Managing Creativity and Innovation	257	(3)
Managing Customer Service	260	(2)
Initiating E-Business Strategies	262	(3)
Becoming a World-Class Organization	265	(3)
Chapter Summary	268	(2)
Key Terms	270	(2)
Sweat Equity	272	(3)
Entrepreneurship in Action Cases	275	(5)
Business Plan Pro Exercises	280	(1)
Business Now Video Case	281	(3)
Managing People	284	(42)
Human Resource Management Issues	285	(15)
Strategic Human Resource Management	285	(2)
Bringing People on Board	287	(7)
Managing People on Board	294	(6)
Motivating Employees	300	(7)
What is Motivation?	301	(4)
How to Motivate Employees	305	(2)
Employee Work Teams and Leadership	307	(4)
What is a Work Team?	307	(1)
Types of Work Teams	307	(1)
Developing and Leading Effective Teams	308	(3)
Other People Issues	311	(3)
Managing Conflict	311	(1)
Empowering Employees and Delegating Duties	312	(2)
Chapter Summary	314	(1)
Key Terms	315	(2)
Sweat Equity	317	(2)
Entrepreneurship in Action Cases	319	(4)
Business Plan Pro Exercises	323	(1)
Business Now Video Case	323	(3)
Managing Growth and Other Entrepreneurial Challenges	326	(36)
Managing Growth	327	(7)
Introduction	327	(1)
Pursuing Growth	328	(2)
Organizing for Growth	330	(4)
Managing Downturns	334	(6)
Recognizing Crisis Situations	335	(2)
Dealing with Downturns, Declines, and Crises	337	(3)
Exiting the Venture	340	(3)
Business Valuation Methods	340	(1)
Important Considerations in Exiting the Venture	341	(2)
Minority- and Women-Owned Businesses	343	(3)
Challenges Faced by Minority and Women Entrepreneurs	343	(1)
Making It as a Minority or Woman Entrepreneur	344	(2)
Family Businesses	346	(3)
Challenges Faced by Family Businesses	346	(2)
Making It as a Family Business	348	(1)
Managing Your Personal Life	349	(1)
Making It Work	349	(1)
Chapter Summary	350	(2)
Key Terms	352	(1)
Sweat Equity	353	(2)
Entrepreneurship in Action Cases	355	(4)
Business Plan Pro Exercises	359	(1)
Business Now Video Case	359	(3)
Section 4 Appendix	362	(1)
Appendix	362	(9)
Web Sites for Entrepreneurs	362	(9)
Additional Entrepreneurship in Action Cases	371	(1)
Varsity Spirit Corporation and National Spirit Group	371	(1)
Cybrel Argentina	372	(1)
Altitunes	372	(2)
Langlitz Leathers	374	(1)
Sterling Autobody Centers	374	(3)
Index	377

Excerpts

Welcome to the second edition of Entrepreneurship in Action!Entrepreneurship continues to be a significant part of our economic health and vitality in the United States. And in this book, I''ve tried to bring to you the excitement and challenges of what it''s like to be an entrepreneur in today''s world. I believe my book is unlike any other entrepreneurship textbook available. Why? Because it emphasizes, explains, and celebrates the realities of being an entrepreneur--it shows entrepreneurship in action. I first wrote this book because I felt ;here was a definite need for a book that conveyed the exciting realities of entrepreneurship; now after finishing the second edition, I still believe that! Entrepreneurship is such a fascinating topic-why not have a book that brings that excitement to students studying entrepreneurship? How does the second edition of Entrepreneurship in Actiondo this? Through many of the unique features introduced in the first edition which have been retained and enhanced. These features include the following: Chapter-Opening Entrepreneurship in Action Case Every chapter opens with a description of a real entrepreneur in action, facing the challenges that entrepreneurs must deal with, and making good and even some not-so-good decisions. The entrepreneurs profiled are Daymond John of FUBU (Chapter 1), Gary Hirshberg of O''Naturals (Chapter 2), Sara Blakely of Spanx (Chapter 3), Lisa Joronen of SOL Cleaning Service (Chapter 4), Karen Drakenberg of StrawberryFrog (Chapter 5), Nicholas Graham of Joe Boxer Company (Chapter 6), Joe Montgomery of Cannondale Corporation (Chapter 7), Glen Kelman of Plumtree Software (Chapter 8), and Corinna Lathan of AnthroTronix (Chapter 9). Each case ties in to the chapter material and is referenced at various points throughout the chapter. These fun stories relate the excitement of the entrepreneurial adventure. It certainly is an adventure that you''re embarking on! Entrepreneurship in Action This chapter box provides examples of entrepreneurs from different types and sizes of entrepreneurial ventures. You''ll discover what''s involved with being an entrepreneur, and you''ll read about different entrepreneurial approaches and philosophies. Again, it''s another way to see entrepreneurship in action. Rapid Review In multiple places throughout each chapter, you''ll find a box that lists review questions addressing the material that you''ve just read. These questions will help you review and assess whether you understand the material. I''ve also used this innovation in my other textbooks ( Managementwith Stephen P Robbins and Strategic Management in Action), and I believe that you''ll find it to be a convenient and useful way to review and reinforce key chapter information. FYI (For Your Information) This chapter box provides information about a particularly interesting entrepreneurial topic or idea. Each chapter has a number of FYI Boxes. Some of the topics covered in the FYIs include male versus female entrepreneurs, gazelles, combating sexual harassment, building customer loyalty, budgeting basics, values-based management, developing your creativity, and the ABCs of trademarks and patents. I think you''ll find the information included in these FYI Boxes to be timely and useful in your entrepreneurial journey. The Grey Zone As I sit writing this preface in the summer of 2002, the collapse of Enron and WorldCom and other well-publicized business scandals are reinforcing the importance of ethical decision making in business. Entrepreneurs do (and will) face ethical and social responsibility challenges as they pursue their entrepreneurial dreams. This chapter box describes some of these issues. You won''t just read about these issues, you''re asked to think critically about what you would do in this situation. As you''ll find out, there are no easy answers when it comes to these grey zone dilemmas. BizPlan Pro Exercises Business Plan Pro software provides students with a step-by-step approach to creating a comprehensive business plan. The software is designed to stimulate students thinking about the many tasks and decisions that go into planning and running a business. Preformatted templates, charts, and tables do the mechanics so students can focus on the thinking. The end-of-chapter Business Plan Pro exercises included in Entrepreneurship in Action, 2e,focus on chapter-related material. By working through the exercises, students will gain a practical business-planning skill as they begin to craft a winning business plan. Sweat Equity You may have heard the term sweat equity before. It refers to the hard work and effort--the sweat--an entrepreneur puts into an entrepreneurial venture in order to build equity value. This end-of-chapter feature presents six to ten assignments that you must "sweat" to complete. These sweat equity assignments cover a broad spectrum of entrepreneurial topics. Many involve writing brief research papers or researching a topic on the Web. I tried to design these assignments to show you the reality of entrepreneurship--again, entrepreneurship in action. Entrepreneurship in Action Cases These Entrepreneurship in Action cases provide descriptions of entrepreneurs and the challenges and issues they''re facing. Discussion questions at the end of each case get you "into" the case and ask for your input on the challenges, issues, and dilemmas that are presented. Five of these cases are in every chapter--one is the chapter-opening Entrepreneurship in Action case--and they cover a broad spectrum of entrepreneurial businesses. Some examples of the entrepreneurial ventures described include an online jewelry retailer, a CPA firm, an artisan bread bakery, and a bike bag manufacturer. These cases are fun to read and provide another dose of entrepreneurship in action. Video Cases In addition to the written cases, one video case is included in every chapter. These video cases, which are video segments from Business Now ( www.businessnow.com), are an excellent way to really see entrepreneurship in action. You''ll hear the voices and see these real-life entrepreneurs as they deal with current issues and challenges. The written cases include discussion questions for you to answer. Appendix The Appendix provides some additional information to help you in your journey to being a successful entrepreneur. There are two major parts included in the Appendix. The first section is an annotated list of entrepreneurship Web sites. The Web sites included in the listing provide all kinds of information about starting and managing an entrepreneurial venture. The second section includes five additional Entrepreneurship in Action cases that you can read for your own enjoyment or that your professor may assign you to read and analyze. As you can see by the descriptions of all the unique features in Entrepreneurship in Action,I''ve tried to provide you as close an experience to what it''s like to be an entrepreneur in action, other than actually being one. I truly hope that the excitement and exhilaration of being an entrepreneur comes through and motivates you to pursue the fun, but demanding, journey of becoming one. Supplements Instructor''s Manual with Test Item File and Video Guide The Instructor''s Manual contains Learning Objectives, Expanded Chapter Outlines with teaching tips and highlighted text features, and teaching notes to end-of-chapter material for each chapter in the text. Each Test Item File chapter contains true/false, multiple choice, . chapter essay, and case essay questions. Also included is